Posted by on March 11, 2019 3:38 pm
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Categories: Economy

President Trump’s 2020 budget isn’t just an outline of his government’s priorities, Democrats have interpreted it as a declaration of war.

Putting forth a budget that the Washington Post said would almost certainly result in another shutdown (and possibly a debt-ceiling crisis) later this year, Trump proposed deep cuts to federal agencies and social welfare services, while once again boosting spending for the military, and appropriating $8.6 billion for his wall.

Budget

The budget, which is expected to become a major issue in the 2020 race, calls for a $17 billion reduction in food stamps, and a $22 billion reduction in welfare programs. It would cut foreign aid by $13 billion, while raising total defense spending by 4% to $750 billion. Over a decade, the budget would cut $1.9 trillion from mandatory spending over a decade.

In total, Trump’s budget calls for $4.75 trillion in federal spending for 2020, up 5% from what’s expected in 2019.

Here are some of the highlights:

  • 5% domestic spending cut
  • 31% cut to the EPA
  • Budget would establish a new Energy Star fee to raise $46 million in fiscal 2020, plus offsetting fees for chemical and oil facilities that could raise $20 million and $10 million
  • 11% cut to the Energy Department
  • 22% cut to Department of Transportation
  • 12% cut to Department of Health and Human Services
  • Foreign aid reduced by $13 billion
  • Defense spending increased by 4% to $750 billion
  • Budget projects $200 billion increase in annual defense spending by 2029, including money for Space Force
  • While raising overall defense budget, Trump projects cuts to war spending beginning in 2022, when Oversea Contingency Fund would be cut to $20 billion
  • Budget for 2020 calls for $174 billion in war spending, including $9 billion in emergency funds
  • Budget claims path to balance in 15 years
  • $8.6 billion for the border wall (enough for 722 miles)
  • New tax on e-cigarettes and vapes
  • Proposes major overhaul of Medicaid by turning more power over to states and cut $241 billion over 10 years.
  • The budget projects $1.1 trillion deficit in 2019, 2020, and 2021, and a $1 trillion deficit in 2022.

Democratic leaders have already declared the budget plan “dead on arrival” in Congress, which has more control over the budget process. Some Republicans (the self-proclaimed “deficit hawks” and some moderates) would likely oppose the budget because of the increase in defense spending and its steep cuts to welfare programs

One New York Times reporter pointed out that the budget calls for more spending on the military, and less on “everything else.”

Read the full budget below:

Read Trump budget proposal by on Scribd

The article, "Trump 2020 Budget Raises Military Spending, Cuts Everything Else", was syndicated from and first appeared at: http://feedproxy.google.com/~r/zerohedge/feed/~3/nNTtjWHt_pU/trump-2020-budget-raises-military-spending-cuts-everything-else.

You may find more great articles by Tyler Durden on http://www.zerohedge.com/fullrss2.xml/sites/default/files/images/user5/imageroot/draghi/CBO%20August%201.png/%2A%7CFORWARD%7C%2A.

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